ED Wong has total of Tk.70,000 invested in a common stock, corporate bonds, and municipal bonds. In order to limit risk, he has twice as much invested in corporate bonds as in stock. Last years, the common stock paid a 2% dividend, the corporate bonds paid 10% interest, and the municipal bonds paid 6% interest. ED’s total income last year from his investments was in Tk.4,800. How much has he invested in bonds?

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Yusuf Keller · Accepted Answer

Let = investment in stock 2x= investment in corporate bonds y= investment in municipal bonds Eq 1: 3x+y=$70,000 y=$70,000−3x Eq 2: Simplify: 0.02x+0.10(2x)+0.06y=$4,800 0.22x+0.06y=$4,800 Substitute: 0.22x+0.06($70,000−3x)=$4,800 0.22x+0.18x+$4,200=$4,800 0.40x=$600 x=1,500 (stock) 2x=2(1,500)=$3,000 Answer: $3,000

Jeffrey Jordon · Accepted Answer

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ED Wong has total of Tk.70,000 invested in a common stock, corporate bonds, and municipal bonds. In order to limit risk, he has twice as much invested

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